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WGRI 4 Recommendation 4/3

4/3.The financial mechanism: review of GEF-5 and needs for GEF-6

A.Review of guidance to the financial mechanism

The Ad Hoc Open-ended Working Group on Review of Implementation of the Convention,
Recalling that the eleventh meeting of the Conference of the Parties will adopt a four-year outcome-oriented framework of programme priorities, taking into account the Strategic Plan for Biodiversity 2011-2020, including its Aichi Biodiversity Targets and associated indicators, in accordance with paragraph 7 of decision X/24,
Noting the considerable allocation of resources made by the Global Environment Facility (GEF) to improve sustainability of protected areas and encouraging the continuation of this trend,
Welcoming the increased orientation at the Global Environment Facility towards recipient country needs, ownership and synergies between conventions,
Commending the efforts that the Global Environment Facility has made to simplify the process of access to funding,
1.Requests the Executive Secretary, in consultation with Parties and the Global Environment Facility, to develop a new four-year outcome-oriented framework of programme priorities for consideration at the eleventh meeting of the Conference of Parties, taking into account the following elements:
(a)The Strategic Plan for Biodiversity 2011-2020, including its Aichi Biodiversity Targets and associated indicators;
(b)The draft report on the full assessment of the amount of funds that are necessary to assist developing countries and countries with economies in transition for the sixth replenishment period of the Global Environment Facility Trust Fund on the understanding that it is a preliminary draft report and will likely be adjusted;
(c)Assessment of current GEF results, remaining programming gaps that need to be met and prioritization of key programming areas;
(d)The need for strengthening capacity-building initiatives;
(e)Further implementation of the Cartagena Protocol on Biosafety;
(f)Implementation of the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of the Benefits Arising from Their Utilization;
2.Recommends that the Conference of the Parties at its eleventh meeting adopt a decision along the following lines:
The Conference of the Parties
1.Adopts four-year outcome-oriented framework of programme priorities for the period 2014-2018 and requests the Global Environment Facility to implement it and report back to the Conference of the Parties at its thirteenth meeting;
2.Encourages the Global Environment Facility to further improve the timeliness of the provision of financial support;
3.Invites donors to increase their financial contributions through the financial mechanism during the GEF-6 replenishment period while recognizing the increase of funds made available under GEF-5, taking into account the substantial financial needs in order to implement the obligations of the Convention, the Strategic Plan for Biodiversity 2011-2020 and the Aichi Biodiversity Targets.

B.Assessment reports of the amount of funds needed for the Implementation of the Convention for the sixth replenishment period of the Global Environment Facility Trust Fund

The Ad Hoc Open-ended Working Group on Review of Implementation of the Convention,
Noting that the preliminary assessment report (UNEP/CBD/WG-RI/4/INF/10), once it is finalized, will be relevant in the overall discussion of resource mobilization,
Also noting that the Global Environment Facility can only provide the incremental costs for global biodiversity benefits, and the assessment presented in the report provide inputs to the discussion on the overall funding needs,
1.Reminds Parties to provide the Secretariat with the data and information requested in the Executive Secretary’s notifications regarding the GEF-6 funding needs assessment and the preliminary reporting framework in a timely manner;
2.Takes note of the preliminary report of the assessment of needs for GEF-6, prepared in accordance with decision X/26, and expresses its appreciation to the members of the expert group;
3.Takes note of the preliminary conclusions of the expert group as summarized in the annex to the note by the Executive Secretary (UNEP/CBD/WG-RI/4/7);
4.Requests the expert group, with the support of the Executive Secretary, to further develop the report (UNEP/CBD/WG-RI/4/INF/10), taking into account the following, for the consideration of the Conference of the Parties at its eleventh meeting:
(a)The views expressed by Parties and observers at the fourth meeting of the Working Group on Review of Implementation of the Convention;
(b)Additional views submitted by Parties, other Governments and organizations prior to 30 June 2012;
(c)Work conducted by the high-level panel on financing for biodiversity, co-sponsored by India and the United Kingdom;
(d)Other relevant technical information on the costs of implementing the Strategic Plan for Biodiversity 2011-2020 and achieving the Aichi Biodiversity Targets;
5.In response to paragraphs 6 in the annex to decision X/26, requests the Global Environment Facility and the Executive Secretary to conduct a review of the draft assessment report of the expert team to ensure accuracy and consistency of approach and data, and assessment of availability of funding through all sources;
6.Recommends that the Conference of the Parties adopt a decision along the following lines:
The Conference of the Parties,
Recalling decision X/26,
1.Emphasizes that the Strategic Plan for Biodiversity 2011-2020 and the Aichi Biodiversity Targets provides the overall framework for the implementation of the Convention for the decade, including for the activities during the period of the GEF-6 (2014-2018);
2.Notes that implementation of the Strategic Plan for Biodiversity 2011-2020 will require the funding of activities that contribute to all five goals and all twenty targets;
3.Also notes the report of the assessment of needs for GEF-6 and expresses its appreciation to the members of the expert group;
4.Takes note of the key messages of the assessment as summarized in the annex to the present note;
5.Takes note of the range of funding needs estimated for the sixth replenishment. This includes both what might be provided through the replenishment of the GEF trust fund for the biodiversity focal area, as well as what might be provided through other funds leveraged through the financial mechanism;
6.Further notes the need for a strengthened focus on mainstreaming and synergies, and requests the Executive Secretary and invites the GEF to identify the Aichi Targets benefiting the most from synergies with other GEF focal areas and make this information available for further use;
7.Emphasizes that:
(a)The Strategic Plan for Biodiversity 2011-2020 and the Aichi Biodiversity Targets are an ambitious framework adopted by Parties to the Convention that require a substantial increase in the resources available;
(b)Achievement of the Aichi Biodiversity Targets will require activities that address all five goals of the strategic plan;
(c)Full use of the financial mechanism of the Convention, including GEF and its network of agencies, with improved efficiency of resource utilization and expanded financial support to recipient countries, is instrumental and critical in advancing the implementation of the Strategic Plan and the Aichi Biodiversity Targets;
(d)International financial institutions and development organizations, national governments, and the private sector may need to play a greater role than hitherto in facilitating the mobilization of financial resources beyond the replenishment of the GEF Trust Fund itself;
(e)Prioritization of activities needs to be done in consultation with the Convention through its Conference of Parties, based on the Four Year framework of programming priorities;
8.Transmits to the Global Environment Facility the report on the assessment of needs for GEF 6, for consideration by the Global Environment Facility, so that the Facility will in its regular report to the Conference of Parties indicate how it has responded during the replenishment cycle to the previous assessment by the Conference of the Parties.

C.Fourth Review of the effectiveness of the financial mechanism

The Ad Hoc Open-ended Working Group on Review of Implementation of the Convention,
Recalling decision X/27 of the Conference of the Parties, and emphasizing the importance of regular reviews of the effectiveness of the financial mechanism,
Also recalling that the Conference of the Parties has obligation to review the effectiveness of the financial mechanism under the Memorandum of Understanding between the Conference of the Parties and GEF,
Noting that the fourth review is essential in the preparations for the eleventh meeting of the Conference of the Parties, and should be presented to the Parties well in advance of the meeting, in accordance with decision X/27,
Being aware that because of the lack of financial resources, the fourth review of the effectiveness of the financial mechanism has not been done,
1.Urges the Executive secretary to effectively implement decision X/27 and prepare the fourth review of the effectiveness of the financial mechanism in a timely and efficient manner;
2.Requests the Executive Secretary to examine the possibility of reallocating funds within existing resources to complete this review before the eleventh meeting of the Conference of the Parties and encourages donors that are in a position to do so to make urgent pledges to finance the implementation of decision X/27 in time for the report to be presented at the eleventh meeting of the Conference of Parties.

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